Ford Plans $3.1-Billion Payout in Spinoff

Ford Motor Co. said it will complete the spinoff of its consumer finance unit Associates First Capital Corp. next month, giving shareholders $25.8 billion in stock and cash in what Ford called one of the largest such deals ever in the United States. Included in the amount is a $3.1-billion payout to about 135,500 employees, retirees and former workers who will receive cash instead of Associates stock. The No. 2 U.S. auto maker also said it will record a $16.5-billion one-time nontaxable accounting gain in the first quarter as a result of the spinoff. Since Ford announced plans for the spinoff in October, Associates stock has gone up 27% while Ford’s has risen about 18%. On the New York Stock Exchange, Ford rose $2.13 to close at $58.94 and Associates added 75 cents to $82.